April 2024 Market Report
Westport CT
State of the US Economy
This plane is landing! The fed is closer than ever at pulling off a remarkable soft landing, easing inflation while bolstering employment. As of April 2024, the U.S. unemployment rate stands at 3.9%, showing a slight improvement that contributes to economic stability. Additionally, the labor force participation rate has seen a small uptick. Inflation is currently at 3.4% annually, this is primarily driven by rising costs in homes and transportation.
The 30-year fixed rate has ticked up slightly from 6.9% to 7.1%. However, there is a possibility of rate reductions by mid-2024 if inflation continues to ease. Real GDP growth is expected to slow to 0.7% this year, influenced by the diminishing effects of post-pandemic recovery and tighter monetary policies. Despite these economic challenges, the U.S. consumer sector remains robust. Households generally have healthy balance sheets, although spending growth is anticipated to decelerate. The job market's stability and moderate inflation are supporting the real estate market. Potential interest rate cuts could further encourage homebuyer activity. However, the expected slowdown in consumer spending might impact demand for higher-priced homes.
Westport Real Estate Market - April 2024
The Westport real estate market shows robust activity with a 25.4% month-over-month increase in median home prices, now at $2.3 million. Homes in Westport average 29 days on the market, indicating a strong seller’s market. However, inventory is beginning to tick up, 12.2% this previous month. Homes are selling at 101.4% of the asking price.
The strong performance of the Westport real estate market reflects the broader economic trends seen across the U.S. The stable job market and moderate inflation rate are key factors supporting real estate market stability. As potential interest rate cuts are anticipated later in the year, this could further fuel homebuyer activity, making it an opportune time for buyers to enter the market and for sellers to capitalize on favorable conditions.
While the broader U.S. economy experiences modest GDP growth and the potential for shifting interest rates, local markets like Westport are thriving. The rising home prices and quick sales in Westport highlight the continued demand and confidence in the housing sector. As inventory levels increase, this could balance the market slightly, providing more options for buyers while maintaining strong sale conditions for sellers.